SA firm snaps 40 percent stake in East African Seed

Johannesburg Stock Exchange (JSE)-listed investment holding company Zeder has acquired a 40 percent stake in East African Seed Company for undisclosed price.

Zeder, focused on food and related business, said it made the investment in the Kenyan seed vendor through its agriculture inputs subsidiary Zaad Holdings.

“Shareholders of Zeder are advised that Zeder’s subsidiary, Zaad Holdings Ltd, has concluded an agreement to acquire (through a combination of an acquisition and subscription) a 40 percent stake in the EAS group of companies, with an option to acquire an additional stake in the future,” Zeder said in regulatory filings.

East African Seed had not responded to our queries on the value of the deal by press time.

The Nairobi headquartered firm was established in 1972. Its operations have expanded beyond Kenya to other East and Central African regions including Uganda, Rwanda, Tanzania and Zambia.

Its seeds are distributed through a network of dealers and stockists in major cities.

The deal is subject to regulatory approvals in Kenya and South Africa, said Zeder.

The firm said the investment will give it a foothold in the regional market where agro-dealing businesses have thrived in recent years as small holder farmers — the backbone of the sector turn to various inputs including fertilisers, certified seeds, agrochemicals and farm equipment to boost yields.

“Zaad has identified East and Central Africa as important growth areas for seed and agrochemicals,,” it said.